New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-04-28
CENTRAL PACIFIC METHODS
CT HUNTINGTON EXPLAINS THEN.

Tia oneDue sesson of the Pacific Railroads Commits
non which the last Congress constituted to inquire
into the relations OF the roads to the Government was
held in the Aston Building In WAll-st YESTERDAY Ex-
Governor Pattison, of Pennsylvania, tine chsirmsn
and L. Eiery Anderson were tho umssioners pres
ent Both the morning and afternoon slttings were
taken up with the examination OF Coils r Hunting-
son vce- president OF the Central Pacific, who ap-
pssrcd IN company With his counsel c. II. Tweed
Mr. Huntington testified to his relations with the
road its construction consolidation with other lines,
methods of doing business and the work done by rome
Its representatives In Washington. His testimony
was not completed but to-day he will give place to
Charles Francis Adams, the president OF the Union
Pacific. :,
In reply to Commissioner Anderson's questions Mr..
Huntington said that he had been connected with the
Central Pacific Railroad since its organisation IN
1852 His particular work was to attend 10 its
financial affairs. The company was ORGANIZED unuor
the laws of California and has Its main once In san
Franeisco where all the meetings OF the directors
were held He and another vice-president nveo lii
this city, but full set OF books was Kept mere nor
had there ever BEEN All his accounts were sent 10
an Francisco and there distributed through the looks
~ the company Financial reports were sent here he
said when he asked tor them. He would not say VINO
comprised the Executive Committee
Then Mr.. Huntington went into the history OF the
roads construction and told OF the obstacles tua'
we're encountered in building 1t. He thought 1t was
the most difficult line ever built The
work was begun with small contractors. but as they
did not get along we'll the contract was give, TO MT
Croker Iron rose from &e2 ton In 1861 to $loo
ton IN the following year. insurance rose rom 2 "
~ DER cent In the same time and locomotives went up
from $4,000 to $4,000 each. Capitalists here
tboughf Il an enormous and hazardous undertaking
and fought shy Of it. Mr. Mills and Mr. G"rtison were
asked to JON in the enterprise but they could not see
their way clear to q safe investment The company
paid for all s supplies IN gold ana that was 'no reason
work came to o standstill .
After referring to Senator Stanford's and NJ;
Crockcrs connection with tho contract ana nnancai
company that had been organized to continue the
bnildiny Of the road Mr. Huntington proce eded TO tell
nj the other roads, such the California Pacific Wes
ern Pacific and CsOvn is t ane CeesraI Pacific and
the c;rcumstancesu nder which they were consoii-
Gated with it. In speaking OF the amalgamation OF
the Central with the Caniorn,a ana oresos Nc sa,.
Prior to the consolidation the latter road was being
constructed by Ben Halliday but he got into trouble ana
could continue then henry Willard Su Eo X noIS q
rot out Of money had to leave It, Our road dd not
Continue the work at once after for ana
years or more, II lie not yet completed
He added that Mr. Croker and other officials of the
Central Pacific were IA work. op the road
Tho contract they have ut present IS not yet com.
peed but The payments S
boods-hsd been received by the Improvement Com
pany. .., A..
construction company purchased steamboats, to run in
connection with the road from San Francisco to points
along the coast. These, 1t seems. were part OF Inc
pur chase Of the California Pacific They we're alter
Ward sold to the Central Pacific to be used ferry
bcats. de did not know how the transfer came
about what price was PAID Of % which he was
interested. There not much proht in these
steamers which, far be knew, were still operated
nv the Central Pacific. The California and Oregon
ran from Portland and was an Oregon corporation.
Its construction was begun in 1865, two years AFTER
the land grant was made. The consolidation was
After snort receas the examination of Mr.. Hunting
ton was resumed Much OF the stock Of the company,
he said, sent to the Pacific before the act OF too
bean none issued Tue law required that III per cent
Of the stock should be paid up before they could
partIy in stock. They we're not paid out OF money
subscribed for stock He could not tell whether there
we're any transfer books or not. IL there were any
such record OF sale transfer OF stock he ala not
know of it, for he looked inside OF ledger he
could help it, Fisk Il Hatch, he thought, might know
something about the transfers, they had the ous
lie scd, was paid IN bonds ., -.
AZ this point Mr. Anderson took up the question OF
legal as contained 10 the balance sheet OF the
company for 1872 and asked the witness TO explain
what il was for. The item was $62,OOO. Mr.. hunt
ingon replied that the company mao no i'm
Washing vt on General Richard Fanehot who was its
council Tor many years before be ded me Hensrai
in fact any questions about it, The company trusted
him implicitly. Indeed. Mr.. Huntington remarked, II
he could not trust man entirely ne woaa hce orust
him at ALL The witness expressed himself as Deihg OF
q trusttul nature himself and he Knew uehefai
Fanchot would never pay oit money without receiy-
,Ss wss engaged No vouchers were taken
him either General Fanchots salary was $2O,oOO
Mr. sherry received just halt this sum- Besides TINS
thew received q great deal more money for when no
vouchers were taken sYou hardly imagine how
many people there are in Washin spn 70 whom yGs
have to explain, SAD , ,ns W ou iA"'sH'''I
His manner OF explaining the theory upon which the
balance sheet made up did not appear u satisfy
ing questions regard the yearly statements oil the
company. Mr.. Huntington said that bookkeeping
was like Greek to him Money es saId was spent III
construction account, which the 1885 balance theet
showed to be $s,5OO.O0O. The equipment account
was discussed, but nothing sensational was evolved
from it, ,, NJ,
r. curing to the question Of legal expenses Mr..
Anderson said {" | noticed in 1873 there Was
do YOU offer the same explanation as you did pre-
viouslyl" Nh. Huntington said that ne dld. IL the
Washington representative asked tor $l0OOO ne got
itwi,hout heine questioned as to what he wanted II
for MY motto u.s." continued Mr.. Huntington, to
trust all IN all, not trust at ALL" Mr. Hopkins he
said and himself had spent millions OF dollars OF
which no account had been kept or rendered.
M Anderson tina. the custom when buying rails
has 70 10 or s You wan. to get
who certain d'lc to Do SONS
:ass % sns sss g
mont S o things Tine Tsy rsaa las s9
ne sa ns e a o but me
money for anthng that was not In the interest
Of the public.
MT could General Franchot require thirty
or forty thousand explainng" 70 Congress- A-fou
educate the peoples you have TO explain to them
tion" ct Washington A.-wc1 We have to
show that IL better to build our railroad on SOLO
build on feet spes You have got to sond people
there 10 explain this moral influence to bear Also
nsE: and aS
The commissioners went all the annual state
ents of the company TO Mr. Huntington offered the
oame explanations In regard to the legal expenses men
toned In each which vouchers had been taken They
aterward questioned him to the lease OF the Central
Pacific to the Southern Pacific He said that he was In
tercsted In both companies.
me proceedings were adjourned until this morning.
When Prosident Adams will testify.
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